Well what a day...Great to see the traders get a few bruises,...

Well what a day...

Great to see the traders get a few bruises, who served it up? I did just a tad.

I’ve been in ROY for some time and have been anticipating the JV drill results with mixed emotion. For me it’s not about the JV, while good, it will probably never provide the moonshot that the traders are looking for. Those with short term syndrome should learn on these stocks: it’s better to accumulate early and off load some on news; as opposed to buy radically on any news and hope it’s the flavour of the day. This time they lost – exit stage left and onto the next quick buck for the in/out unexperienced.

Thankfully what’s left out of this fiasco are the investors, those that know more about the company then the news which was released earlier today. Ahhhhhh yes us not so bright investors that buy options at 18-20c and off load for 50% gains, and keep a few because we like the story. Hey, might buy back more at the end of the week?

The JV will provide GBG with cheap DSO for early years of production. GBG is very keen to find as much DSO as possible - obviously it will bring down costs dramatically and help in the crucial early stages of developing a mine. ROY’s reward from this will be early cash flow, while probably not the company maker or moonshot it will provide ROY’s share price a floor. The question at present for us not so smart
investing types is:

Where is the floor?

I don’t really have answer of great substance yet but I’d guess 38c.

I could put a lot of fundamental effort into why 38c. But if you don’t get it, then you simply don’t get it!

All the best to the idiot investors like me and good riddance to the traders and rampers that were smoked out of ROY today.